All Forum Posts by: Connor Dunham

Yep. Definitely worth looking into the FHA lending rules further. I would say that the case could be made if you had a change of job, but not if you continue working at a remote site. I'm not your lender though so it's worth researching the right way to do it.

Hi Tom. 

Here are some ideas for you: research what Airbnb's go for in your area using airdna.co market reports for your zip code. Sometimes it makes sense in our market, sometimes it doesn't with the service fee and bed taxes. Try out your airbnb idea with your current unit before going and buying a SFH for that purpose to see if you like the business and to help set up the systems you will need while running it remotely from camp. FHA has a requirement that you are "upgrading" everytime you purchase. Whether you need more bedrooms or more square footage or a garage, or you want a shorter commute. So, going from a SFH to a 4-plex without getting divorced or something would be a tough sell to the underwriter. Ideally, try to plan your progression like 4-plex -> Triplex -> Duplex -> SFH. Additionally, you may find that the FHA requirements and upfront PMI puts an undue cost on the transaction and are better off just setting up a HELOC after refinancing into the conventional on your first property, then using the HELOC to fund 10 to 15% of the next transaction.

Hi Ron, I'm a few years your junior but I'll take a crack at getting the discussion going. With 50 units I'm sure you do have some very good cost data to support the hourly rate you mentioned. I recently had a phone conversation with John Wirum over the phone because one of his on-site managers was applying for a unit I had open (he was looking for more space). He has about your scale and his properties are mostly downtown. I don't think he has people employed full-time but he was able to hire them because he subsidized his their rent. This seems like a smaller step if full-time work isn't there. 

The information I would give you depends on if you are the Buyer or Seller. :-) As I've only acted on the buy-side, I've been able to say which escrow company is used. Typically, the Seller pays for the appraisal but everything is negotiable.

I’ve been solicited multiple times by people running these types of businesses to lease my rentals in the UMED area. I can send you their contact information if you want to reach them. PM me a request. I haven’t seen them wanting to pay above market rates or anything. Why does this type of business/tenant interest you?

Welcome to the forums. While you can find an answer to almost every question in here, both podcasts are a great educational resource if you haven’t checked them out. 

That's great! Downtown FBX has seen some really nice road projects recently. They are doing a lot of things right up there. Are you on district heat?

Hi @Brian Bradley. I visit homer often for work and with the family. If you get to the point where you need permitting help, all the way up through infrastructure and site development, my day job does a decent chunk of work in Homer every year. PM me when you get to that point. Definitely take a business trip there. The views are spectacular. 

I have some electric heaters I drop by if the heat goes out in winter (before night). I find anything more than 2-3 days is too long and will pay a higher rate at that point. Your local laws will dictate what is reasonable. You could do the same with window A/C units. Keep them as loaners. Also, yes, we don’t have A/C and it’s rarely above 75.

Hi Patrick,

I bought my first duplex in 2014 with 10% down. I refi'd before moving out and PMI dropped off within a couple months after paying for a broker price opinion. Much of this was made possible by an upward trending market and buying right. Currently, I'm in my third owner-occupied property and am looking to refi next year or will be requesting PMI be taken off at the two-year mark since the loan was sold to Freddie Mac: https://new-content.mortgageinsurance.genworth.com...

I've done some analysis and depending on the type of loan, PMI can be treated like additional interest to determine if you should seek alternative financing. Most recently, I was getting 9% apr on the PMI related portion of the down payment (anything above 80% LTV). So, it can really be a killer if kept on for the long term.